The S&P 500 has achieved its eighth consecutive weekly gain, marking the first such streak since 2023, with the index rising another 0.88% over the week according to Deutsche Bank strategists [1]. This advance occurred despite a 0.76% decline in the Magnificent 7 tech stocks, which ended their own seven-week winning streak [1]. The rally in US equities was supported by falling oil prices, which helped ease investor fears of a stagflationary shock to the global economy and provided a boost to both bonds and equities across the Atlantic [1].
Futures trading after the long weekend showed S&P 500 futures up 0.62% and NASDAQ futures up 0.85%, though these levels were slightly below those seen before overnight strikes [1]. Danske Bank's research team highlighted a persistent risk-on tone in global equities, with European stocks closing 1.1% higher in thin holiday trading [2]. The session was characterized by outperformance in cyclicals, small caps, and growth stocks, with peace talks and lower oil prices cited as catalysts, alongside a reversal in long-end yields that began last week [2].
US futures pointed to further gains, with an indicated opening around 0.7% [2]. Asian markets were also generally higher, led by the Kospi, where SK Hynix and Samsung rebounded 7% and 3%, respectively, following a brief pause in semiconductor trading last week [2].
Both sources emphasize the positive market sentiment driven by macroeconomic factors such as oil prices and yields, as well as sector rotation into cyclicals and growth stocks. However, while the S&P 500's advance was achieved despite weakness in big tech, European and Asian markets saw broader participation in the rally [1][2].
CONCLUSION
The S&P 500's eighth straight weekly gain underscores robust risk appetite, supported by falling oil prices and easing yields. Despite some weakness in large US tech stocks, global equities benefited from a broad-based rally, with cyclicals, small caps, and growth stocks leading gains. Market sentiment remains positive, with futures and international indices pointing to continued strength.